BA set for return to Footsie top flight

British Airways today looked certain to secure a return to the prestigious list of London’s top 100 shares.

The airline, which lost its FTSE 100 Index status in March after its share price crumbled to 86p in the run-up to the Iraq war, will be readmitted to the top flight following a quarterly review this week.

The FTSE Equity Indices Committee is expected to confirm BA’s return this afternoon after using yesterday’s closing prices to determine the composition of the FTSE 100 Index. The changes come into effect on December 22.

Based on last night, BA is London’s 80th biggest company with a market value of £2.47bn. Shares have trebled in the last nine months to 227p.

BA is likely to be promoted along with recruitment services company Hays, which is currently ranked 88th. The pair will replace Provident Financial and pubs group Mitchells & Butlers in the top flight.

It will be the second time in a year that BA has won back its place in the Footsie after making a brief return in December 2002. Prior to that, BA had been an ever-present since its flotation in 1987.

While prospects for the airline have brightened in recent months, chief executive Rod Eddington warned recently that BA would continue to seek ways of reducing costs on top of cuts already announced.

Arla Foods and Northumbrian Water are among companies due to join the FTSE 250 Index – at the expense of groups including ebookers and Holidaybreak.

The FTSE reshuffles its benchmark index every three months to ensure that only Britain’s biggest companies are included in the prestigious club.